Skip to Content

Nestle SA NESN

Morningstar Rating
CHF 94.94 +0.34 (0.36%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Nestle's Exposure to Advantaged Categories and a Wide Moat Support Profitable Growth Ahead

Although Nestle's performance during the pandemic has been nothing short of stellar, we believe the main drivers of this outperformance have been fueled by pandemic-led lockdowns—millions of households have adopted pets, and consumption of coffee at home has been boosted by work-from-home trends. While we don't expect a complete reversal of these trends in the future, we do expect outperformance to be less pronounced in the years ahead. We expect organic growth to slow toward the 5% level by the end of our explicit forecast period.

Price vs Fair Value

NESN is trading within a range we consider fairly valued.
Price
CHF 94.60
Fair Value
CHF 794.00
Uncertainty
Low
1-Star Price
CHF 212.51
5-Star Price
CHF 93.80
Economic Moat
Zxl
Capital Allocation
Yccsjvwv

Bulls Say, Bears Say

Bulls

The breadth and diversity of Nestle's portfolio and its geographic reach allow for easier absorption of brand and operational shocks.

Bears

Given inflationary pressures, volume growth in some of its product categories appears to be weakening, particularly in prepared dishes and milk products, a function of higher demand elasticities and lower pricing power in these categories.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if NESN is a good fit for your portfolio.

News

Trading Information

Previous Close Price
CHF 94.60
Day Range
CHF 94.4695.58
52-Week Range
CHF 89.52109.34
Bid/Ask
CHF 0.00 / CHF 0.00
Market Cap
CHF 248.74 Bil
Volume/Avg
3.1 Mil / 4.1 Mil

Key Statistics

Price/Earnings (Normalized)
19.23
Price/Sales
2.68
Dividend Yield (Trailing)
3.17%
Dividend Yield (Forward)
3.17%
Total Yield
3.17%

Company Profile

With a 150-year-plus history, Nestle is the largest food and beverage manufacturer in the world by sales, generating more than CHF 90 billion in annual revenue. Its diverse product portfolio includes brands such as Nestle, Nescafe, Perrier, Pure Life, and Purina. Nestle also owns around 20% of French cosmetics firm L'Oreal. The company employs 275,000 people around the world and has a vast portfolio of global products, with more than 30 brands each achieving more than CHF 1 billion in sales annually and a geographic presence that spans almost 190 countries.
Sector
Consumer Defensive
Industry
Packaged Foods
Stock Style Box
Large Core
Total Number of Employees
270,000

Competitors

Valuation

Metric
NESN
MDLZ
HSY
Price/Earnings (Normalized)
19.2319.8819.65
Price/Book Value
6.943.199.38
Price/Sales
2.682.553.42
Price/Cash Flow
16.4516.8914.84
Price/Earnings
NESN
MDLZ
HSY

Financial Strength

Metric
NESN
MDLZ
HSY
Quick Ratio
0.490.240.41
Current Ratio
0.830.770.97
Interest Coverage
8.5612.8514.39
Quick Ratio
NESN
MDLZ
HSY

Profitability

Metric
NESN
MDLZ
HSY
Return on Assets (Normalized)
10.01%6.30%16.90%
Return on Equity (Normalized)
34.58%16.16%51.47%
Return on Invested Capital (Normalized)
14.97%9.83%23.23%
Return on Assets
NESN
MDLZ
HSY
See how this stock stacks up to its competitors with Morningstar Investor

Packaged Foods Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Nestle SA ADR
NSRGY
FchzwwgxsXgw$279.4 Bil
Danone SA ADR
DANOY
KtffnzdhGqhqf$41.1 Bil
The Kraft Heinz Co
KHC
PztnhpfpjBbkyz$40.9 Bil
General Mills Inc
GIS
GtjyvkgnyHgxvbq$37.8 Bil
Kellanova Co
K
XzbxjbqdcFlclh$20.4 Bil
McCormick & Co Inc Registered Shs Non Vtg
MKC
MwbgnxwtPnty$18.6 Bil
Hormel Foods Corp
HRL
SwlrwfqcPxzqz$16.8 Bil
Conagra Brands Inc
CAG
HjvzqvmThny$14.0 Bil
Campbell Soup Co
CPB
DfsrdyzjLgs$12.9 Bil
Lamb Weston Holdings Inc
LW
NmlbcdfYgcbp$12.6 Bil

Sponsor Center